Online multimedia data needs to be encrypted for access control. To be capable of working on mobile devices such as pocket PC and mobile phones, lightweight video encryption algorithms should be proposed. The two major problems in these algorithms are that they are either not fast enough or unable to work on highly compressed data stream. In this paper, we proposed a new lightweight encryption algorithm based on Huffman error diffusion. It is a selective algorithm working on compressed data. By carefully choosing the most significant parts (MSP), high performance is achieved with proper security. Experimental results has proved the algorithm to be fast. secure: and compression-compatible.